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T. Rowe Price (TROW) Sees Marginal Decline in January AUM

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T. Rowe Price Group, Inc. (TROW - Free Report) announced preliminary assets under management (AUM) of $1.46 trillion for Jan 31, 2021. The balance reflects a minimal decline from the $1.47 trillion recorded as of Dec 31, 2020.

Client transfers from mutual funds to other portfolios, including trusts and separate accounts, aggregated $2.8 billion this January.

The January-end total sponsored U.S. mutual funds came in at $790 billion, down 0.5% from December 2020. Of the total U.S. mutual funds balance, approximately 90% comprised investments in equity and blended assets, while the remaining came in from the fixed income and money markets.

Total other investment portfolios were $674 billion, marking a slight dip from the prior month. Overall, equity and blended assets accounted for $585 billion or 87% of total other investment portfolios, while money-market and fixed income products amassed at $89 billion or 13%.

T. Rowe Price registered $333 billion in target date-retirement portfolios, reflecting a marginal increase from the $332 billion witnessed in the previous month.

Our Viewpoint

T. Rowe Price’s robust balance sheet provides sufficient liquidity, thereby supporting the roll out of new funds. Also, its diverse business model is anticipated to stoke AUM growth. However, rising costs and a stringent regulatory environment across the investment management industry might be headwinds for the long term.

Shares of the company have gained 18.9% in the past six months compared with 26.5% growth witnessed by the industry.


 
Currently, T. Rowe Price carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Competitive Landscape

Cohen & Steers (CNS - Free Report) reported preliminary AUM balance of $81.2 billion as of Jan 31, 2021, up 4.2% from the prior-month level. Net inflows of $2.06 billion were partly offset by a market depreciation of $0.59 billion and distributions of $207 million.

Invesco Ltd. (IVZ - Free Report) announced preliminary January-end AUM balance of $1367.1 billion, up 1.3% from the previous-month end. Positive market returns aided this upswing, boosting the AUM by $2 billion.

Franklin Resources (BEN - Free Report) recorded a preliminary AUM balance of $1494.4 billion for January. This reflected a 0.2% decrease from the $1498 billion recorded as of Dec 31, 2020.

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